The European Investment Bank (EIB) and German stock exchange-listed MAN Group, have entered into a €300m loan contract to promote research in the commercial vehicle sector.

As a part of a MAN’s total investment of over €600m, the funds are intended for the development and launching of reduced-emission and fuel-efficient powertrains for trucks and buses.

MAN will develop and use highly efficient Euro 5 and Euro 6 engines and launch heat and energy recovery systems.

Other projects will involve further development work on buses and trucks with hybrid powertrains, reducing their weight, energy management and optimised vehicle dynamics and control and the development of new types of simulation technologies.

The EIB loan forms part of a programme to provide financial support for research, development and innovation projects aimed at reducing emissions and improving energy efficiency in the European transport sector.